Title
Resolution Authorizing Publication of Notice of Intent to Issue Capital Improvement Bonds for Various Park Capital Improvements (Not to Exceed $10,000,000.00) (6 Votes Roll Call)
Memorandum
Recommended for Council is a Resolution approving the publication of a Notice of Intent to Issue Capital Improvement Bonds (Limited Tax General Obligation) in the maximum principal amount of $10,000,000.00 for the purposes of financing public improvements to City parks and the cost of issuance, i.e., underwriting, bond counsel, municipal advisor, rating and paying agent costs.
The purpose of this resolution is to authorize publication of a notice of intent to issue the Bonds to inform the electors and taxpayers of the City of Ann Arbor of the Bonds’ purpose and their right to petition for a referendum on the questions of issuance of the Bonds. The City intends to issue the Bonds without a vote of the electors, but the Bonds will not be issued until 45 days after publication of this notice and until final approval and authorization by separate resolution.
Staff anticipates that the City of Ann Arbor will be responsible for repayment of the Bond proceeds, interest, and other related issuance costs through the Parks Maintenance and Capital Improvement Millage.
Staff
Prepared by: Marti Praschan, Chief Financial Officer
Reviewed by: Michelle Landis, Senior Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Resolution: R-26-___
File Number: 26- Enactment Number: R-26-___
Resolution Authorizing Publication of
Notice of Intent to Issue
Capital Improvement Bonds FOR PARK CAPITAL improvemenTS and Declaring Intent to Reimburse
CITY OF ANN ARBOR
County of Washtenaw, State of Michigan
Minutes of a regular meeting of the City Council of the City of Ann Arbor, County of Washtenaw, State of Michigan, held on the 8th day of September, 2026, at 7:00 p.m., Eastern Daylight Time.
PRESENT: Members
ABSENT: Members
The following preamble and resolution were offered by Councilmember __________ and supported by Councilmember __________:
WHEREAS, the City Council of the City of Ann Arbor (the “City”) intends to issue general obligation limited tax bonds pursuant to Act 34, Public Acts of Michigan, 2001, as amended (“Act 34”), in one or more series, in an aggregate principal amount of not to exceed Ten Million Dollars ($10,000,000) (the “Bonds”) for the purpose of paying all or part of the costs to acquire, construct, furnish and equip improvements to city parks, including furniture, fixtures, furnishings, equipment, utilities, and site improvements, together with appurtenances and attachments thereto (the “Project”); and
WHEREAS, it is proposed that the Bonds be limited tax general obligation bonds secured by a pledge of the City’s full faith and credit, subject to constitutional, statutory and charter tax rate limitations; and
WHEREAS, a notice of intent to issue bonds and of the right to petition for referendum thereon must be published at least 45 days before the issuance of the aforesaid Bonds in order to comply with the requirements of Section 517 of Act 34; and
WHEREAS, the City intends at this time to state its intentions to be reimbursed from proceeds of the Bonds for any expenditures undertaken by the City for the Project prior to issuance of the Bonds.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Clerk of the City (the “City Clerk”) is authorized and directed to cause a notice of intent to issue bonds to be published and prominently displayed once in The Washtenaw County Legal News, a newspaper of general circulation in the City. Said notice of intent shall be published as a one-quarter (1/4) page display advertisement in substantially the following form (the “Notice”) with such changes as the City Clerk shall deem necessary and appropriate, upon the advice of Miller Canfield as bond counsel:
[Form of Notice]
NOTICE TO ELECTORS OF THE CITY OF ANN ARBOR
OF INTENT TO ISSUE GENERAL OBLIGATON
CAPITAL IMPROVEMENT BONDS FOR PARK CAPITAL IMPROVEMENTS
SECURED BY THE TAXING POWER OF THE CITY
AND OF THE RIGHT TO PETITION FOR REFERENDUM THEREON
PLEASE TAKE NOTICE that the City Council of the City of Ann Arbor, Washtenaw County, Michigan (the “City”), intends to authorize the issuance and sale of the City’s Limited Tax General Obligation Capital Improvement Bonds, pursuant to Act 34, Public Acts of Michigan, 2001, as amended, in one or more series, in an aggregate principal amount of not to exceed Ten Million Dollars ($10,000,000) (the “Bonds”) for the purpose of paying all or part of the costs to acquire, construct, furnish and equip improvements to city parks, including furniture, fixtures, furnishings, equipment, utilities, and site improvements, together with appurtenances and attachments thereto (the “Project”).
SAID BONDS will be payable in annual installments, not to exceed fifteen (15) in number, and will bear interest at the rate or rates to be determined at a public or negotiated sale, but in no event to exceed the maximum rate permitted by law, on the unpaid balance from time to time remaining on said Bonds.
SOURCE OF PAYMENT OF BONDS
THE PRINCIPAL OF AND INTEREST ON SAID BONDS shall be payable from the general funds of the City lawfully available for such purposes including property taxes levied within applicable constitutional, statutory and charter tax rate limitations. The City anticipates paying debt service on the bonds from a portion of the tax revenues received from the City’s parks maintenance and capital improvements millage.
RIGHT TO PETITION FOR REFERENDUM
The Bonds will be issued without a vote of the electors unless a valid petition requesting such a vote signed by not less than 10% or 15,000 of the registered electors of the City is filed with the City Clerk within forty-five (45) days after publication of this notice. If a valid petition is filed, the Bonds may not be issued without an approving vote of the majority of the qualified electors voting thereon.
This notice is given by order of the City Council pursuant to the requirements of Section 517, Act 34, Public Acts of Michigan, 2001, as amended.
Jacqueline Beaudry
City Clerk, City of Ann Arbor
[End of form of Notice]
2. The City Council does hereby determine that the foregoing form of Notice and the manner of publication directed is the method best calculated to give notice to the City’s electors and taxpayers of the City’s intent to issue the Bonds, the purpose of the Bonds, the security for the Bonds, including the full faith and credit pledge to be issued by the City, and the right of referendum relating thereto, and the newspaper named for publication is hereby determined to reach the largest number of persons to whom the Notice is directed.
3. The City hereby makes the following declarations for the purpose of complying with the reimbursement rules of Treas. Reg. § 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended:
(a) The City reasonably expects to reimburse itself with proceeds of the Bonds for certain costs of the Project which were paid or will be paid from the funds of the City subsequent to sixty (60) days prior to today from the City’s general fund or parks funds.
(b) The maximum principal amount of debt expected to be issued for the Project, including issuance costs, is $10,000,000.
(c) A reimbursement allocation of the capital expenditures described above with the proceeds of the Bonds will occur not later than 18 months after the later of (i) the date on which the expenditure is paid, or (ii) the date the Project is placed in service or abandoned, but in no event more than three (3) years after the original expenditure is paid. A reimbursement allocation is an allocation in writing that evidences the City’s use of the proceeds of the Bonds to reimburse the City for a capital expenditure made pursuant to this resolution.
4. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded.
AYES: Member
NAYS: Member
ABSENT:
RESOLUTION DECLARED ADOPTED.
__________________________
Jacqueline Beaudry, City Clerk
I hereby certify that the attached is a true and complete copy of a resolution adopted by the City Council of the City of Ann Arbor, County of Washtenaw, State of Michigan, at a regular meeting held on the 8th day of September, 2026, and that public notice of said meeting was given pursuant to and in full compliance with Act No. 267, Public Acts of Michigan, 1976 and that minutes of the meeting were kept and will be or have been made available as required by said Act.
____________________________
Jacqueline Beaudry, City Clerk
____________________________
Date Certified